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QB106621 Unit 2 - Q&A
QB106621 Unit 2 - Q&A
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uncertainty and change. It helps in facilitating control. It helps in coordination.
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Planning increases organization effectiveness. Planning guides in decision making.
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S.
5. Define – mission.
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Mission may be defined as a statement which defines the role that an organization plays in the society.
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7. Define – Objectives.
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The terms objectives or goals are often used interchangeably. Objectives are the end results towards which
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9. Define – Policies
Policies are general statement or understandings, which provide guidance in decision making to various
managers.
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Growth Finance Organization
Personal Products or services
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Market
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19. Classify policies.
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The assumptions about future derived from forecasting and used in planning are known as planning premises.
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- Selecting the course of action we will pursue
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7. Formulating supporting plan
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S.
- Such as plans to buy equipment, buy materials, hire and train Workers.
Develop a product.
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C
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2 Explain the Planning Premises. (16)
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Planning Premises
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organizations action. These include the rate of economic growth. Population, growth,
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taxation policy of government, natural climate, war etc
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Making premising effective: S.
a) Selection of premises
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b) Collection of informationIDYARTHIPLUS.COM
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3 Explain the process of MBO and explain its benefits and weakness. (16)
Management by Objectives (MBO)
"MBO is a comprehensive managerial system that integrates many key managerial
activities in a systematic manner and that is consciously directed towards the effective and
efficient achievement of Organization and individual Objectives."
- Where superiors and subordinates jointly identify the goals of the
Organization
Process of MBO
Setting preliminary Objectives
Clarifying Organizational roles
Setting subordinates Objectives
Recycling Objectives
Weakness of MBO
Failure to teach the philosophy of MBO
Failure to give guidelines to goal setters
Difficulty of setting goals
Emphasis on short run goals
Danger of Inflexibility
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4. Define Forecasting. Explain the various forecasting techniques used for decision making
process. (16)
Forecasting
- Process of predicting future conditions that will influence and guide the
activities, behavior and performance of the Organization.
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Def- "Fore casting is the formal process of predicting future events that will
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significantly affect the functioning of the enterprises.
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Features S.
Involvement of Future events
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Importance
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Key to planning
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Executive development
Facing Environmental challenges
Forecasting Techniques
Qualitative (use of Statistical tools) and Quantitative (employ human judgments to
predict future)
Time series Analysis - involves decomposition of historical series into its various
components. VI - trend, seasonal variations, cyclical variations and random variations. A
trend can be known over the period of time and projections can be made about future.
Historical Analogy - past history records
Correlation - to find the relationship between two variables. E.g. Between advertising
expenditure and sales volume, Future sales estimated on basis of change in adv
expenditure
Regression - To measure the relationship between two variables. To find the relative
movements of two or more interrelated series.
Delphi Technique - the minds of the experts in the concerned areas are probed
systematically.
Input output analysis
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5. Discuss the process involved in decision making. (8)
Decision Making
Is the process of choosing a course of action from available alternatives?
Def. Haynes & Massie "Decision making is a process of selection from a set of
alternative courses of action which is thought to fulfills the objective of the decision - problem
more satisfactorily than others."
Types of Managerial Decision
Organizational and Personal decision
Routine and Strategic decision
Programmed non programmed decision
Policy and operating decision
Individual group decision
Decision making process
Defining the problem
Analyzing the problem
Developing alternative solutions
Evaluating the alternative
Selecting the best alternative
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